Jump to content
Forums Gone... but not forgotten!
Pontiac of the Month

Fabio Parede's 1969 Catalina

2023 June
of the Month

  • Welcome!

    Welcome to Forever Pontiac, where we keep the memory of Pontiac alive with great discussion, maintenance tips, restoration/modification progression "blogs" and help from professional & DIY mechanics. Also, wonderful competitions that occur regularly. Please register for an absolutely free account to join in!

RSS Report: Carfax slapped with $50M antitrust suit by 120 dealers


Recommended Posts

  • Founders

Filed under: Car Buying, Government/Legal

carfax-250.jpgIn December 2012 Automotive News published a piece on dealers unhappy with Carfax, alleging that the most well known used vehicle history reporting company had maneuvered itself into a monopolistic position. Dealers were paying the price for it by being charged more for Carfax reports than they'd have to pay for those from similar agencies, and there was nothing they could do about it. Now it will be for a judge to figure out: Automotive News reports that 120 dealers have joined a class-action lawsuit against Carfax over anti-competitive practices and violations of anti-trust law, and more are signing up to join the suit.

As to that alleged monopolistic position, Carfax is the provider of record for the certified pre-owned programs of 37 out of 40 manufacturers, so if a dealer wants to be part of the program he has to buy Carfax reports. Carfax also has exclusive deals with Cars.com and AutoTrader.com, so when a dealer lists a car on either site he can only use reports from Carfax. That's how, even though there are ten companies accredited by the National Motor Vehicle Title Information System to provide used vehicle reports, some that are less expensive than Carfax, it isn't in a dealer's best financial interest to consider them.

Leo Bellavia out of Mineola, NY, who also handled cases for Saab dealers trying to compel the Swedish firm to enter bankruptcy and Chrysler dealers fighting their involuntary franchise terminations, is the attorney of record for the plaintiffs. The dealers want more than $50 million in damages. Carfax has said it can't comment on the suit.

Carfax slapped with $50M antitrust suit by 120 dealers originally appeared on Autoblog on Fri, 26 Apr 2013 13:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments
autoblog?i=2gItg1HUTdg:zsOBr9pHVoU:wF9xT autoblog?i=2gItg1HUTdg:zsOBr9pHVoU:V_sGL

Link to comment
Share on other sites

Tired of these Ads? Register Today!

I figured there were other companies, but that they were 3rd party providers that the consumer doesn't really think about. I think Carfax did the huge promotion so customers would actually know and it would give dealers incentive to get carfax because consumers would get the "trustworthy" vibe from it.

Link to comment
Share on other sites

  • Founders

Carfax is garbage. It's so easy to have something not reported on there.

Sent from my mind using telekinesis.

Says the guy who has sold 40 cars in the last 5 years, remind me not to buy a car from Mark :rofl:

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Tired of these Ads? Purchase Enhanced Membership today to remove them!
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.